1. Field of Invention
Banking systems and processes have always been in the process of evolution for the betterment and convenience of the customers. A problem which currently exists is that there is no deck data or physical check validation causing checks that are damaged or improperly filled out or having data omitted to be returned to the user. The present invention solves this problem.
2. Description of the Prior Art
Check deposit machines have gained immense importance in recent years as they offer a blend of convenience of check deposit along with the immediate generation of a deposit receipt to the customer. Also, with the check truncation systems in place, the checks can be immediately introduced in the workflow for clearing which can further speed up the check clearing process. However, current systems are limited to generating a receipt for deposited checks.
Use of check truncation systems saves the user from the traditional method of depositing the check in the bank or dropping the check in the drop-box at the ATM.
In the past, the most common problem that existed was of lost or misplaced checks. Also, going to the bank to deposit a check was a tedious and time taking task as the customer had to stand in lines at the branch counters or wait in their automobile for drive thru banking. In addition the overhead for the banks was increased as extra man-power was required for handling the deposit of checks and providing receipts.
The presently used check deposit machines have eliminated this problem. The main problem with the current check deposit machines is that they are only depositing the check and there is no data or check validation that has been implemented in these machines. The validation is done only when the check actually reaches the bank clearing workflow. The check deposit machine process involves (1) entering the account number, (2) depositing the check, (3) entering the amount and (4) giving an acknowledgement to the depositor. The acknowledgement contains fields such as date, time, account number in which check has to be deposited, and check number. This system however does not verify the quality of the check, validate the check fields and does not indicate to the user that his or her check is valid and will be deposited.
The deposited checks are then collected from the bank deposit centers and they follow their normal route of clearing. The checks that are deposited in the banks on a daily basis for clearing is huge and involves a cycle of stages. The check is dropped in the drop box at the ATM or deposited in the check deposit machine. The check is then collected from the center and sent to the clearing house from where they are sent to the drawee bank service branch. The drawee bank then re-sends the same to the clearing house and the clearing house sends it to the settlement bank. If there is no problem with the data filled in the check, the amount gets credited to the customer's account. If at any of the stages, the check is found to have some discrepancy in data or is physically damaged, the check is returned unpaid to the depositor.
The complete check clearing cycle normally takes 2-5 working days and the customer has to wait for the money to be credited to his account. If the data filled in the check is incorrect or missing, or if the checks are of poor quality, it is only after a wait of 2-5 days that the depositor is informed that the check has been rejected by the bank. This time-period still has not been reduced after the introduction of the check deposit machines. Currently check deposit machines are used to scan the check and gives acknowledgement for the check deposit process. A huge amount of checks are deposited in machines and these checks are sent to the bank for check quality analysis and validation. Significant effort is required in check quality analysis and validation. This effort can be removed or greatly reduced if validation can be done while depositing the check in check deposit machines.
These and many other problems are addressed by the instant invention.